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Risk Management

History of Risk Management

Risk management began many years ago in industry as a way of reducing damage to equipment and property and later as a means to reduce injury to workers. The reduction of worker injury was motivated not so much by a sudden concern for worker welfare, but was the response of industry to the enacting of workers compensation laws in most states (then called “workmen’s compensation”) which placed an added financial burden on industry to obtain insurance coverage.


Application of medical risk management principles was rare until the mid-1970’s when a medical malpractice insurance cost and availability “crisis” emerged. It was then that the concepts of risk management were gradually adopted by hospitals and then by doctors in their offices as a means of reducing medical risk and associated liability. Initially, risk management principles were applied to the processes of hospital and office operation.


HUOH believes that it is in your best interest, your patients’ best interests, and your insurance company’s best interest to offer you guidance and assistance in your implementation of reasonable risk management principles in your office and as you work in other health care facilities. HUOH further believes that keeping you informed of selected current medical abstracts with references may be of help in your practice. 


Real implementation requires that each doctor learn to think in a risk management way. Each doctor must also lead the office staff in the concept and ensure that personnel don’t drift away from the established procedures during the routine and repetitive office operations.



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